WHY IT MATTERS: Wall Street regulation
WASHINGTON — THE ISSUE: The financial crisis that struck in 2008 touched off the worst recession since the 1930s Great Depression, wiping out $11 trillion in U.S. household wealth and leaving about 8 million Americans jobless. More than 5 million families lost their homes to foreclosure. Reckless trading and aggressive practices on Wall Street in the prior boom years were pinned with much of the blame.
In the aftermath, Congress enacted an overhaul of financial rules aimed at preventing another meltdown and multibillion-dollar taxpayer bailout of banks. The 2010 Dodd-Frank law gave regulators new oversight powers and tools to shut banks without resorting to bailouts. Risky lending was restricted and a new federal agency was charged with protecting consumers from deceptive marketing of financial products.
Republicans and many in the business community complain that the restrictions have raised costs for banks, especially smaller ones, and other businesses, stifling economic growth. They want the overhaul law repealed.
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